• Record gross mortgage lending of £1.1 billion – up 27% on 1997

• Net mortgage lending £679 million – up 37% on 1997

• Net receipts from savers of £456 million – the second best total ever

• Asset growth of 20% to £5.2 billion

Coventry Building Society today announced exceptional business results for the year ended 31 December 1998, clearly reflecting the advantages which its building society status brings.

Gross mortgage lending totalled over £1.1 billion (the first time ever that the £1 billion milestone has been exceeded) representing a 27% increase on 1997. Not only was the Society successful in attracting new borrowers, but it was also successful in retaining existing customers as well, with net lending (gross lending less capital repayments) improving by 37% to £679 million. This is estimated to be more than two and a half times the Society’s ‘natural’ share.

Savings receipts totalled £456 million – the second best performance ever achieved by the Society, £67 million up on 1997.

This success in all aspects of our business enabled assets to increase by £872 million to total over £5.2 billion at the year end, representing 20% growth, undoubtedly amongst the strongest performances in the sector.

Despite the fact that at 1.24% of average assets the interest margin remains amongst the narrowest in the sector, pre-tax improved by £7.2 million to £37.3 million, enabling the Society to maintain strong capital ratios.

Cost containment combined with strong growth enabled the ratio of administrative expenses to average assets to improve from 0.83% to 0.77%, reinforcing the Coventry’s position as one of the most efficient building societies in the United Kingdom.

Commenting upon the Society’s impressive results, Chief Executive Martin Ritchley said:

"Unlike our banking competitors, we have no dividends to pay to outside shareholders. Once again, we have used this significant advantage to offer market leading products to our savers and borrowers and we are delighted that this has enabled us to grow out business substantially.

"20% growth in a single year is impressive by any standards. Undoubtedly, a significant proportion of new business has been attracted from the banks because of the competitive advantage we enjoy but, as a building society, we have ensured that existing customers also benefit in a tangible way from their membership of the Coventry.

"In December 1998, the Moneyfacts survey comparing the interest charged by the top 30 lenders, identified the Coventry’s Privilege Rate as delivering the best deal to established customers – the second successive time the Coventry has topped the table (see notes).

"In a highly competitive market, we are proud of the Society’s results for 1998, which demonstrate that we are delivering the benefits of membership of the Coventry to more and more people. Our impressive results reinforce our determination to remain a building society."